Modeling Biomass Grower Payment (BGP)
Start Date
8-11-2017 8:30 AM
End Date
8-11-2017 12:30 PM
Abstract
Biomass has significant potential to solve US energy problem. Recent Department of Energy (DOE) research shows that biomass can replace 30% of coal-generated energy (U.S. Department of Energy, 2016). The potentiality can be turned into reality if the feedstock cost of biomass is economically viable. In the current form, only resource-abundant areas can be economically viable to establish biorefinery. Various efforts have been made to quantify, reduce, and optimize the feedstock logistic cost. One such approach of quantifying the feedstock cost is Biomass Logistic Model (BLM) proposed by Cafferty et al. (2013). In BLM, grower payment, a critical component of feedstock cost is an externally determined constant for specific biomass. Grower payment is the monetary compensation that the biomass grower receives. The base of grower payment in BLM is Billion-Ton study (U.S. Department of Energy, 2016), that used the Policy Analysis System (POLYSYS) (Ugarte & Ray, 2000) to estimate the farmgate prices of biomass at the county level. The proposed Biomass Grower Payment (BGP) model determines grower payment at sub-field level using agricultural economics and agronomic input. This model can be used to determine grower payment in the event of both dedicated and integrated (where row crop and energy crop is grown in the same field) landscape management. This model is capable of handling spatial and temporal variation and performing risk analysis. The goal is to incorporate BGP with existing BLM to get comprehensive feedstock cost and perform site-specific techno-economic analysis (SSTEA). Given the biomass prices scenario, BGP model can be used as a decision tool for the farmer.
Modeling Biomass Grower Payment (BGP)
Biomass has significant potential to solve US energy problem. Recent Department of Energy (DOE) research shows that biomass can replace 30% of coal-generated energy (U.S. Department of Energy, 2016). The potentiality can be turned into reality if the feedstock cost of biomass is economically viable. In the current form, only resource-abundant areas can be economically viable to establish biorefinery. Various efforts have been made to quantify, reduce, and optimize the feedstock logistic cost. One such approach of quantifying the feedstock cost is Biomass Logistic Model (BLM) proposed by Cafferty et al. (2013). In BLM, grower payment, a critical component of feedstock cost is an externally determined constant for specific biomass. Grower payment is the monetary compensation that the biomass grower receives. The base of grower payment in BLM is Billion-Ton study (U.S. Department of Energy, 2016), that used the Policy Analysis System (POLYSYS) (Ugarte & Ray, 2000) to estimate the farmgate prices of biomass at the county level. The proposed Biomass Grower Payment (BGP) model determines grower payment at sub-field level using agricultural economics and agronomic input. This model can be used to determine grower payment in the event of both dedicated and integrated (where row crop and energy crop is grown in the same field) landscape management. This model is capable of handling spatial and temporal variation and performing risk analysis. The goal is to incorporate BGP with existing BLM to get comprehensive feedstock cost and perform site-specific techno-economic analysis (SSTEA). Given the biomass prices scenario, BGP model can be used as a decision tool for the farmer.
